As revival of P1B fund sought: Capitol creditors may finally get their due

CEBU, Philippines — Contractors and suppliers with collectibles from the Capitol during the previous administration of Governor Gwendolyn Garcia are now a step closer to getting paid.

This after an ally of Garcia in the Provincial Board has moved to reinstate the almost P1 billion continuing appropriations for the years 2005 to 2013 that were deleted through an ordinance during the administration of former governor now Vice Governor Hilario Davide III.

Yesterday, Provincial Board Member Glenn Anthony Soco proposed an ordinance revoking Ordinance No. 2018-11 that deleted the total amount of P986.9 million in continuing appropriations as there was reportedly no cash support in the budgetary records.

Authored by PB Member Miguel Antonio Magpale, the ordinance was passed on August 13, 2018 and approved by then governor Davide on August 24, 2018.

Soco’s proposed ordinance is still subject for further review and discussion by the committee on budget and appropriations, which he chairs.

“Once approved, mabalik na siya (P986.9 million) sa records ug balances sa atong panudlanan,” Soco said.

The current Provincial Board is composed of 10 allies of Garcia and seven allies of the opposition led by Davide.

In a letter dated July 11, 2019, Provincial Accountant Marieto Ypil informed Garcia that as of December 31, 2015 – or more than two years into Davide’s first term -- there was a net cash balance of P1,134,477,528.70 in the books of the Capitol.

The yearend balance would have been more than enough to cover the deleted allocations, said Ypil.

As of June 30, 2018, the general fund cash balance stood at P2,867,663,696.16 and the cash report of the Provincial Treasurer as of June 29, 2018 also reflected a general fund cash position of P3,031,097,170 immediately prior to the enactment of the PB ordinance.

“Our current net cash balance based on the foregoing financial statements as of May 31, 2019 is P3,000,292,931.61,” Ypil told Garcia.

Soco, in his resolution, said that based on available records, there is sufficient cash support or cash back-up for the items deleted. Hence, he said, Ordinance No. 2018-18 has “no factual basis.”

“Said deletion also finds no legal basis as there is no law authorizing for the deletion of the unexpended and continuing balance on the budget of local government units,” Soco said.

Ypil, in his letter to the governor, cited Section 322 of Republic Act No. 7160 or the Local Government Code of 1991 which provides that “appropriations for capital outlays shall continue and remain valid until fully spent, reverted or the project is completed.”

He said: “Reversions of continuing appropriations shall not be allowed unless obligations therefor have been fully paid or otherwise settled.

“The balances of continuing appropriations shall be reviewed as part of the annual budget preparation and the sanggunian concerned may approve, upon recommendation of the local chief executive, the reversion of funds no longer needed in connection with the activities funded by said continuing appropriations subject to the provisions of this Section.”

When Davide assumed as governor in July 2013, he had declared proceeding “carefully” in dealing with a long list of bills worth P789 million left behind by Garcia’s administration.

He had said he would first review whether vouchers and supporting documents were in order, especially for transactions that needed the PB’s approval. (FREEMAN)